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March 5, 2026
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Political risk insurance sought to secure maritime energy shipments, with premiums borne by contracting parties to maintain supply continuity.
India is seeking political risk insurance and financial guarantees from the International Development Finance Corporation to secure maritime transit for oil, LPG and LNG through the Strait of Hormuz; a dedicated corpus must be established before cover can be provided and premiums will be paid by contracting parties. The government is also diversifying suppliers and considering reprioritisation of domestic gas allocation to manage LNG shortfalls caused by route disruption and force majeure.
March 5, 2026
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Trade disruption risk from Strait closure threatens Indian tea exports and underscores maritime chokepoint vulnerability.
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March 5, 2026
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March 5, 2026
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Economic growth slowdown signals structural pressures; export strength and trade surplus reshape bilateral trade imbalances and strategy.
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March 5, 2026
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March 5, 2026
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March 5, 2026
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March 5, 2026
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Weekly petroleum price revision to preserve market liquidity and compensate fuel suppliers amid supply-route disruptions.
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March 5, 2026
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Energy security: Russia offers crude while India diversifies imports amid regional instability and external trade monitoring.
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March 5, 2026
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Combination approval permits Central Bank of India to increase shareholding in Generali insurers, subject to a regulatory order.
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March 5, 2026
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Merger control approval permits an investment firm to acquire shareholding in a national packaged foods manufacturer.
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March 5, 2026
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Combination approval: REIT to acquire developers and issue units in exchange for target shareholdings.
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March 5, 2026
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March 5, 2026
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Economic growth target lowered to prioritise consumption, jobs and fiscal measures amid global and domestic uncertainties.
China reduced its economic growth target and set accompanying macro targets-including urban unemployment, urban job creation, CPI moderation, income growth alignment, balance of payments stability, steady grain output, and lower carbon emissions intensity-while announcing demand-side fiscal measures: an income-growth plan, targeted support for low-income groups and property income, reforms to remuneration and social security, issuance of special treasury bonds for consumer trade-in schemes, and a fiscal-financial coordination fund to expand domestic consumption.

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Customs & Trade

MRO services in India to grow to USD 5.7 billion by 2030

March 20, 2026

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Singapore, Mar 20 (PTI) Demand for Maintenance, Repair and Overhaul (MRO) services in India is expected to grow to USD 5.7 billion by 2030 from USD 4.4 billion in 2025, a 5.4 per cent growth per annum, a Singapore-based consultancy said Friday.

Engine MRO demand is expected to contribute almost half of this demand, with airframe and modifications slated to grow the fastest in this five-year period, according to a study report by Alan Lim and Joshua Ng, Directors of Alton Aviation Consultancy and aviation industry veterans.

Alton forecasts that India’s commercial aircraft fleet will grow to more than 1,800 aircraft by 2030, with narrow-body aircraft almost doubling from over 700 aircraft today to over 1,300, Lim and Ng said.

The directors noted that Indian airlines have already placed more than 500 aircraft for delivery over the next five years.

“To accommodate this growth, the government has committed to building more than 100 additional airports over the next six years, taking the total to over 200 by 2030, the two industry veterans told PTI.

“A rapidly expanding middle class, increased low-cost carrier penetration, and improving regional connectivity are further stimulating demand,” they said, backing their market outlook.

Beyond MRO, India is developing a broader aerospace ecosystem to support sustained aviation growth. “The government has set ambitious targets to expand domestic passenger traffic, increase the number of operational airports, and strengthen workforce and manufacturing capabilities, supported by large scale investments in airport infrastructure and new greenfield developments,” said Lim.

Ng noted, “Special economic zones, including GIFT City, are being positioned to anchor aircraft leasing and related financial services, while policies such as the ratification of the Cape Town Convention, liberalised foreign direct investment rules, and reductions in GST and customs duties on aviation components are lowering barriers for global aerospace players.

“Together, coordinated public policy and private investment are helping to build a more integrated, self-sustaining aviation value chain in India, spanning airports, leasing, aerospace manufacturing, and MRO,” they said.

The aviation-focused consultancy, which has offices across eight key aviation hubs around the globe, has highlighted recent high-profile investments in the Indian aviation sector.

Navi Mumbai International Airport commenced operations in December 2025, and Noida Airport will soon commence operations, in March 2026, with initial capacities of 12 million and 20 million passengers annually, respectively.

Dholera International Airport (planned investment of over USD 250 million, targeted completion December 2026) and Bhogapuram International Airport (planned investment of over USD 550 million, targeted completion June 2026) are set to further expand capacity.

Both Lim and Ng feel that continued investment in the supporting aviation infrastructure and services in India, especially for MRO services, is important, given that a large number of Indian aircraft are going for services outside the country including Singapore.

Several high-profile investments in recent years underscore this momentum, they added, listing aerospace focused special economic zones, including Hyderabad’s Adibatla SEZ, are attracting global suppliers such as Pratt and Whitney and Safran.

Safran inaugurated its 200 million euro LEAP engine MRO facility in Hyderabad for strengthening India’s capabilities in next generation engine overhaul.

IndiGo, in partnership with Bengaluru International Airport, has commenced development of a dedicated MRO facility to support its expanding fleet, they pointed out.

Elsewhere, Thales opened a new avionics MRO facility in India, expanding domestic repair capability in high value components, and the Adani Group acquired Air Works in December 2024 and subsequently AAR-Indamer Technics, which has consolidated its position in commercial MRO.

In February 2026, the Adani Group also signed an MoU with Embraer to establish a final assembly line for the E175 regional jet in India.

Under the Rafale programme’s 50 per cent offset clause, Dassault of France and its partners will be required to reinvest about half the contract value into India, supporting domestic manufacturing and aerospace capability development.

“Collectively, these developments signal that infrastructure capacity, manufacturing depth, and technical capabilities are beginning to scale to support the projected fleet growth, with growing participation from both domestic and international investors seeking to anchor long term aviation capabilities within India,” said Lim and Ng.

Supporting this growth will require more than continued investment from the public and private sectors. Faster parts logistics, deeper pools of skilled and certified maintenance personnel, and greater capability in higher value segments such as engines and complex components will be essential, they said.

“Close coordination between airlines, MRO providers, airports, training institutions, and policy-makers will play a critical role in building a resilient ecosystem capable of supporting India’s expanding air transport sector,” they believe.

As India’s aviation market scales, the MRO sector is set to become a core enabler of growth rather than a peripheral service, linking the country’s long term air transport outlook with industrial development and employment creation, said the duo. PTI GS PY PY PY

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